A manufacturing company has a beginning finished goods inventory of $14,600, raw material purchases of $18,000, cost of goods manufactured of $35,200, and an ending finished goods inventory of $18,700. The cost of goods sold for this company is:

A. $32,500

B. $47,100

C. $31,100

D. $27,600

E. $29,300

C. $31,100

Explanation:

The computation of the cost of goods sold is presented below:

= Beginning finished goods inventory + Cost of goods manufactured - ending finished goods inventory

= $14,600 + $35,200 - $18,700

= $31,100

We simply added the cost of goods manufactured and deduct the ending finished goods inventory to the beginning finished goods inventory so that the cost of goods sold could come